What’s Going On Here?Data out on Thursday showed UK house prices climbed again last month, but there are some signs of a slowdown. What Does This Mean?The cost of living is putting Brits off even the smallest of purchases, so mix in unattractive spiraling mortgage rates and it’s no wonder that UK house prices have… risen. Yup, risen: a lack of supply is almost single-handedly propping up the market, with data from the Royal Institution of Chartered Surveyors showing the average estate agent branch covered just 35 properties in July – the lowest since records began. Would-be buyers then had little choice but to outbid rivals for their dream home, which helped push house prices up 10% in August from the year before, overshooting economists’ 8.9% prediction. Mind you, that mightn’t be a huge shock: that’s the tenth straight month of double-digit growth, and brings the average house price to a fresh high of £273,751 ($316,000) – a whole £50,000 ($58,000) higher than just two years ago. Why Should I Care?The bigger picture: Every little helps.
Still, that was a slowdown from the previous month’s 11% uptick. And that might continue: Bank of England data out this week showed the number of new mortgages approved sunk below pre-pandemic levels, plus expected rate hikes will only keep hopeful homebuyers firmly off the ladder. And that – along with more anticipated supply this fall – might be why some estate agents expect price rises to slow even more going forward.
For you personally: Mark your calendars.
Oxford Economics went one step further, predicting that UK house prices will actually fall from the middle of next year. Still, that doesn’t mean wannabe buyers will be able to put down deposits: they’ll have to slog through high inflation – which Goldman Sachs believes could hit 22% next year – to get there first, and it’s predicted the best two-year fixed-rate mortgage around will sit at 5.5% by then – almost double what you’ll find today. | 
